CANE & BAMBOO FURNITURE

Introduction:
Cane and Bamboo products have always occupied an important position in the handicrafts
sector. Cane & bamboo are renewable resources, grows widely and abundantly availably in the
North Eastern Region. The products also have great demand in the international market. Over the
years, rural artisans have imbibed wide range of skills in the manufacture of various items and the
skills have been the skills have been passed from generations to generations. Assam and Tripura
occupies a prominent place in cane and bamboo products both nationally as well as
internationally.
The Product:
Cane is largely used for furniture making, whereas bamboo is used for making decorative items
like lamp-stand, partition, screen, flower pots, basket, fans mats etc. In recent years, uses of cane
furniture have considerably increased not only in middle class homes, hotels and offices but also
among foreign tourist coming to N.E. Region. Most of the class hotels are using cane and
bamboo items to give elegance and stylish traditional look to their interiors.
Market Potential:
Though all the North Eastern States produce cane and bamboo items yet Assam, Tripura and
some extent Arunachal Pradesh has a major contribution in the total production. The present
share of only cane furniture is about 15 to 20 crores and out of which 2 crores are exported.
NEHHDC, AGMC, ARTFED along with some private and involved in exporting of the products.
Some of the products that are exported from the North East to internal as well as external
markets are as follows:
ƒ Basket ware,
ƒ Cane furniture
ƒ Mat & matting
ƒ Decorative items.

The countries where there products go are China, USA, Japan, French, West Germany, Italy,
Netherlands, U.K., Switzerland, Austria etc.
Hence there is considerable demand for the product in the national as well as international
market. There is a potential of 15% grow every year. Based on the present production level of 20
crores per annum, it is envisaged that an additional 3 crore per annum production can come up.
A typical unit can produce around 10 lakhs to 15 lakhs worth of items and an additional 10 to 13
such units can come up every year.
Suggested capacity:
There are varieties of can and bamboo products. A typical cane and bamboo furniture unit would
be set up with the following product-mix.
Items Nos. / year
1. Decorative Sofa Set 50
2. Screens 100
3. Single chairs 200
4. Bamboo basket 200
5. Shelves 100
6. Shelves with drawers 100
7. Dining chairs 200
8. Murahs 200
9. Dining tables 100
10. Divans (Deluxe) 50
11. Divans (Simple) 75
12. Police Lathis 800
13. Police Shields 400
14. Pot stands 300
15. Cane beds 100
16. Trolley 100

Infrastructure Requirements:
The major infrastructure requirements are –
Working shed, store and show room counter : 1200 sq ft.

212
 Power : 2 KW
Water : 500 ltrs/day

Raw Material and Its Availability:

The main raw materials required are canes of different varieties and bamboo. There is no dart of
raw materials in the N.E. Region. Following is the approximate consumption of raw materials per
month.
Different type of canes 2750 pcs.
(e.g. Raidang, Jeng, Jatti)
Bamboo : 500 pcs. L.S.
Sital patti (for design) Sand paper, Nails, :
Glass, varnish, Plywood, Kerosene oil,
turpentine oil, Adhesive, Plastic traps,
Gums etc.

Suggested Locations:
Keeping in view availability of canes and bamboo, the following locations are suggested:

Assam : Lakhimpur, Bongaigaon, Diphy, Guwahati

Jorhat, Silchar, Tinsukia, Mangaldoi, Tezpur.

Tripura : Nelaghar, Bishramganj, Belonia, Agartala,

Udaipur, Dharmanagar, Khowai

Arunachal Pradesh : Along, Pasighat, Tezu, Bomdila, Zero,

Itanagar.

Nagaland : Dimapur, Kohima, Mokokchung

Manipur : Ukhrul, Churachandpur, Chandel,

Tamenlong.
Sikkim : Gangtok, Penlang, North Sikkim area.

Production Process:
The major process involved is –
ƒ Selection of natural cane & bamboo for specific job work.
ƒ Preparation of basic elements or members by bending length of whole cane to required
shape.
ƒ Fixing the members is position by use of nails.
ƒ Blending the wavered joints by length of split cane to cover visible nails and give
additional rigidity.
ƒ Scrapping & varnishing/painting where required.
Project Economics:
Total capital Requirements:
The total capital requirements for the project is estimated at Rs 10.05 lakh which includes fixed
capital and working capital.
A Fixed Capital: (Rs in lakhs)
Land Own
Site Development 0.45
Building: Working Shed 5.60
Plant & Machinery 0.95
Misc. Fixed Assets 0.50
Preliminary & Pre-operative Expenses 0.30
Contingency Provision 0.35
Rs. 8.15 lakh
B. Working Capital to be Financed as –
Margin Money 0.48
Bank Finance 1.42
Rs. 1.90 Lakh

213
Means of Finance:
Amount (Rs lakh)
Term Loan ((75%) 6.11
Promoter’s Equity(25%) 2.04
Rs. 8.15 lakh
Coat of Production & Profitability:
Amount (Rs lakhs)
A. Annual Revenue Rs. 22.75 lakh
B. Cost of Production:
Raw Materials & Consumables 10.14
Utilities 0.16
Wages & Salaries 4.32
Plant Overheads & Repair, Maintenance 0.21
Depreciation 0.70
Administrative expenses 0.24
Interest 0.95
Selling expenses @ 5% of annual sales 0.92
Rs. 17.64 lakh
Operating Profit : Rs 5.11 lakh
Annual Sales Realization:
Items Quantity Rate Amount
(Nos.) (Rs/piece) (Rs lakhs)
Sofa set (complete) 50 7000 3.50
Screens 100 1500 1.50
Single chair 200 600 1.20
Bamboo basket 200 200 0.40
Shelves 100 800 0.80
Shelves with drawers 100 1500 1.50
Dining chairs 200 500 1.00
Murahs 200 250 0.50
Dining tables 100 1500 1.50
Divans (Deluxe) 50 4000 2.00
Divans (Simple) 75 2000 1.50
Police lathis 800 75 0.60
Police shields 400 300 1.20
Pot sands 300 350 1.05
Cane beds 100 3500 3.50
Trolleys 100 1000 1.00
TOTAL 22.75
Machinery & Equipment:
The main equipments are –
Amount (Rs lakh)
Cane Splitting Machine 4 Nos.
Blow lamp 14 Nos.
Hand drill 6 Nos.
Pipes for blending 14 Nos. 0.95
Planner 2 Nos.
Misc. items – Hand tools like
Hacksaw frames, knives, Dao,
Pliers, hammers, cane cutting
Scissors etc.
Building:
Working shed – 800 sq.ft. 3.20
(Pucca floor with CI roofing)
Storage/Godown for Raw Materials – 200 sq.ft
and finished products 2.40
Office-cum-display center – 200 sq.ft.
Rs 5.60 lakh

214
Cost of Raw Materials & Consumables:

Items Quantity Rate Amount

(Nos.) (Rs/piece) (Rs lakhs)
Complete Sofa set 30 2800 0.84
Screens 50 600 0.30
Basket (Bamboo) 200 80 0.16
Single chair 200 350 0.70
Shelves 100 500 0.50
Shelves with drawers 100 800 0.80
Dining chairs 200 280 0.56
Murahs (Cane decorative) 200 150 0.30
Dining tables 100 800 0.80
Divans (Deluxe) 50 1900 0.95
Simple Divans 75 1100 0.83
Police lathis 800 75 0.60
Police shields 400 100 0.40
Pot sands 300 150 0.45
Cane beds 80 1500 1.20
Trolleys 100 250 0.25
Total 9.64
Add: Consumables like sand paper, varnish, nails, 0.50
tupes, pelties, plywoods, hinges, glass etc.
TOTAL 19.78

Manpower Requirement and Wages:

Sl. Category Nos. Avg. salary Total Salary

No. per month per month
1. Manager 1 3000 3,000
2. Skilled workers 8 2500 20,000
3. Semi-Skilled workers 4 2000 8,000
4. Helper 2 1500 3,000
5. Sales personnel 1 2000 2,000
Total 16 36,000
Annual Salary Bill Rs 4.32 lakh

Cost of Utilities & Overheads:

The power requirement for the unit:

Since the requirement are generally hand tools, : 2 KW

power requirement is for general light and water
requirements

The total daily requirement of power

[ 2 KW x 8 hrs. (single shift x 0.8) : 12.8 Kwh
i.e. 13 Kwh
: . Daily power bill ( 13 Kwh x Rs 4/-) = 52/-

Total annual cost of power : Rs 0.156 lakh

Plant Overheads:
Amount (Rs lakh)
Repair and maintenance 0.07
Insurance 2% of building, plant Assets & 0.14
Misc. Fixed assets Rs. 0.21 lakh

215
Break – Even Point Analysis:

A. Variable Cost
Amount (Rs lakh)
Raw Material & consumables 10.14
Utilities 0.16
Selling expenses 0.92
11.22

B. Semi-Variable Cost:
Wages & Salaries 4.32
Repair and maintenance 0.21
Administrative expenses 0.24
Depreciation 0.70
Interest 0.95
5.72

C. Sales Realization 22.75

D. Contribution 11.53

E. Break Even Point B/D x 100 49.60%

216